Gang Arrested for Taking Cell Phones, Making Microtransactions, and Reselling Them After Saying "I'll Give You a Loan"

Gangmaster Behind Purchase of 900 Phones from 440 People Caught
Imported Cars Like Maserati and Benz Bought with Crime Proceeds
Boss A, Former Korean Pro Fighting Champion

[Asia Economy Reporter Song Seung-yoon] A gang that swindled 1.5 billion KRW by taking victims' mobile phones and SIM cards under the pretext of loans, making small payments, and then selling the phones as burner phones has been caught by the police.

On the 29th, the Gangbuk Police Station in Seoul announced that they had booked 28 people, including A (24), on charges of fraud, computer-related fraud, organizing a criminal group, and violating the Telecommunications Business Act, and sent 22 of them to the prosecution. The Seoul Northern District Prosecutors' Office has indicted 12 of them, including the ringleader, in custody.

They are accused of impersonating loan companies from November last year to March this year, receiving about 900 mobile phones and 1,200 SIM cards from approximately 440 victims who wished to take out loans, and embezzling about 1.5 billion KRW. It was investigated that A and others used the received SIM cards to make small payments for goods and game items, and sold the mobile phones to burner phone distributors for profit.

A and others posted advertisements online such as "urgent loans" and "loans for the unemployed," and deceived victims who contacted them by saying, "If you open a new mobile phone line and deliver the phone, we will provide the loan," committing these crimes. They divided roles into customer information collectors, counselors, and buyers, and committed the crimes in an organized manner. The ringleader A is known to be a former professional martial arts Korean champion. Some of them were also found to have driven luxury imported cars such as Maserati and Mercedes-Benz with the proceeds of their crimes.

The police started an investigation after receiving reports that someone was trying to buy mobile phones under the pretext of loans. In March, they arrested a phone buyer and secured clues about the organization’s crimes, subsequently arresting the remaining members one by one. During the investigation of suspects sent by the police, the prosecution identified additional accomplices and notified the police, conducting a coordinated investigation by promptly requesting arrest warrants for the suspects. To recover criminal proceeds, the prosecution also applied to the court for pre-indictment seizure and confiscation of about 1.6 billion KRW, including hidden criminal proceeds and personal claims.

A police official said, "Recently, crimes involving receiving mobile phones or SIM cards from ordinary citizens, making small payments, and distributing the phones to criminal organizations have been rampant," and emphasized, "Handing over mobile phones and SIM cards to others is also subject to criminal punishment, so mobile phones should not be carelessly transferred to others."

This content was produced with the assistance of AI translation services.